President Obama two years ago rejected a series of tough actions against China,
including counter-cyber attacks and economic sanctions, for Beijingâs
aggressive campaign of cyber espionage against the U.S. government and private
businesses networks, according to administration officials.

Meanwhile, China recently issued a veiled threat to the United States about
U.S. accusations of Chinese military cyber espionage. China told U.S. officials
that continued U.S. public accusations of cyber espionage would render future
bilateral discussions unproductive during recent U.S.-China talks following the
release of a security firmâs report linking the Chinese military to cyber
spying.

On plans to deter Chinese cyber attacks, senior administration officials turned
down a series of tough options designed to dissuade China from further attacks
that were developed over a three-month period beginning in August 2011.

According to administration officials familiar with internal discussions, the
options were dismissed as too disruptive of U.S.-China relations.

[...]

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